Indian CEO

Zomato’s Revenue up By 80% ($49 million) in FY17

Zomato Media Pvt Ltd. is happy to share its success with the consumers who made it possible. This advertisement and food delivery service providing company recently shared that its revenue rose by 80% in the fiscal year 2017. The results were compared with the last fiscal year results when the market reputation of Zomato was seriously affecting its business.

In a recent blog uploaded by Chief operating officer of Zomato, Surobhi Das says the company had to face the drop of cash burn to $12 million from previous years’ $64 million.

She further mentioned that although the company attained two times revenue growth in the fiscal year 2016 as compared to the fiscal year 2015, the year 2016 yet wasn’t that good for the Zomato. In the FY16, the rate of cash burn was on a higher note and with this, the company was expected to consolidate their operations at the International level as well.

The unfavorable wave of FY16 completely eroded the value of Zomato. The dark period came when HSBC Securities and Capital Markets of India Pvt. Ltd reduced the value of Zomato to almost 50% that is $500 million. Despite this, Zomato managed to rise to $60 million by September 2015. Surprisingly, the overall growth of this company since its inception is worth considering. It rose to about $225 from the year 2008 when it started its operations for the first time.

Zomato needs to give something unique and very different from its competitors if it really wants to succeed in the online food delivery business. To develop itself into a profitable business, it needs to think differently. This clearly means that Zomato should raise funds and invest in other ventures in order to improve this advertising and food delivery business.

As of now, Zomato is fully operational in 23 countries. This is really a remarkable count to mention Zomato’s name amongst the Indian startups that too with and International presence.

Zomato reduced cash burn to $250,000/month between December 2016 and March 2017 from $4.2 million/month in March 2016.

The core business of this company was advertising after which it started food delivery as well. Most of the revenue of this company come from advertising only.

Looking for good home made food at office? Try TinMen Prices start at just 70 RS per meal.

Startups generally celebrate every small reason, But if the reason is about a milestone achievement then it makes a big difference. This victorious path is not an easier one and we have faced and surpassed many challenges in the last few months to meet our target of half a million visitors. While our ambition is a much bigger number, the target we achieved was planned towards the end of the financial year and our team made it possible 4 months in advance.

Indeed a great effort by Shishir Kumar and the entire team and a special thanks to the avid readers of IndianCEO for following us. IndianCEO is indeed my first bet in to media business and believe me this is just the beginning. Early next year we have some great product announcements and our next milestone is not far away.